Managing Finance and Budgets

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Managing Finance and Budgets

• Seminar 9

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Follow-Up to Lecture Nine - Activities

• Preparation read Chapter 12
• Describe key concepts
• Budget definitions and purposes
• Budget-setting process
• Different types of budget
• Exercises 12.3 and 12.7

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Questions 1

• What exactly is meant by a budget?
• Describe briefly the different purposes that a
  budget may be used for.

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The uses of budgets
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Questions 2

• Outline the steps in the planning and control
  process which encompasses the entire budget
  setting scenario.
• Describe in detail the steps involved in actually
  preparing a budget.

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The planning and control process
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Steps in the budget setting process
Establish responsibility for the budget-setting
process
Communicate budget guidelines to relevant managers
Prepare the budget for the area of the limiting
factor
Identify the key or limiting factor
Review and co-ordinate budgets
Prepare draft budgets for all other areas
Communicate the budgets to all interested parties
Prepare the master budgets
Monitor actual performance relative to the budget
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Follow-up Activities

• M A Exercise 12.3 12.7